For investors seeking momentum, Xtrackers MSCI EAFE ESG Leaders Equity ETF EASG is probably on radar. The fund just hit a 52-week high and is up 38.82% from its 52-week low price of $21.25/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
EASG in Focus
The underlying MSCI EAFE ESG Leaders Index provides exposure to companies across developed market countries, excluding Canada and the United States, which exhibit high environmental, social and governance performance relative to their sector peers. The product charges 14 bps in annual fees.
Why the Move?
With growing concerns over climate issues, governance and social equity, investors can expect the environmental, social and governance (ESG) space to grow. The sector is showing good growth potential, with the S&P 500 ESG Index outperforming the S&5 500 for the last 10 years.
Companies with a good ESG track record tend to bounce back during volatile markets. Growth in the sector is also supported by the increase in global mandates, reduced business risk for companies and better financial performance offered by ESG-related policies, as per a blog published on Perillon.com.
More Gains Ahead?
Though EASG has a Zacks ETF Rank #4 (Sell) currently, it might continue its strong performance in the near term given a positive weighted alpha of 5.68.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
